Tailwind buys ArrowStream from Diversis

Diversis Capital has sold ArrowStream to Tailwind Capital.

Diversis Capital has sold ArrowStream to Tailwind Capital. No financial terms were disclosed. Lincoln International LLC was financial advisor to ArrowStream on the deal. ArrowStream is a provider of end-to-end supply chain management software for the foodservice industry.


LOS ANGELES, December 16, 2020 – Diversis Capital (“Diversis”), a Los Angeles-based buy-out firm focused on software and technology-enabled organizations, today announced the sale of ArrowStream, Inc. (“ArrowStream”), the leading cloud-based provider of end-to-end supply chain management software for the foodservice industry, to Tailwind Capital (“Tailwind”), a private equity firm focused on investments in growth-oriented, middle market companies.

“We appreciate all the guidance and investment that Diversis has provided us over these past few years,” said Jeff Dorr, President of ArrowStream. “Diversis shared our vision to transform supply chain visibility for the foodservice sector and we are very excited to continue that mission with another exceptional financial partner in Tailwind Capital.”
Diversis acquired ArrowStream in 2017 from the founding family and during its ownership worked collaboratively with ArrowStream’s management to invest in the company’s technology platform to enhance its functionality and broaden its presence in the foodservice industry. They also helped to strengthen the management team and expand sales and marketing programs. ArrowStream’s recurring revenues organically tripled during Diversis’s ownership.

ArrowStream’s market-leading supply chain solutions connect over 250 restaurant chains, 1,000 distributor locations and 8,000 suppliers on a single platform, and include well-known brands such as Raising Cane’s Chicken Fingers, Shake Shack, Wendy’s, Inspire Brands, QDOBA Mexican Eats, and Subway, among others.

“We were fortunate to partner with an exceptional management team at ArrowStream a few years ago,” said Kevin Ma, Managing Partner at Diversis. “When Diversis first invested in the company, we saw a mission-critical platform that was transforming supply chain visibility within the foodservice sector, an area that is becoming more critical with each passing day. We couldn’t be more proud to have helped this team evolve into the high growth, market leading innovator it is today.”

ArrowStream was advised by Lincoln International LLC as financial advisor and O’Melveny & Myers LLP as legal counsel.

About ArrowStream
ArrowStream is the leader in end-to-end supply chain management software for the foodservice industry, helping clients capitalize on data to improve their business. The Company serves thousands of chain restaurant operators, distributors and suppliers with a single integrated network of applications and industry data, providing unmatched levels of transparency, control and actionable insight to protect their clients’ brands, mitigate risks and optimize profitability. For more information, visit www.arrowstream.com.

About Diversis Capital
Founded in 2013, Diversis is a software and technology focused private equity fund that invests in lower middle-market companies, targeting situations where it can add unique value in helping a company reach the next level. With a collaborative approach to investing, its Operating Partners and Strategic Advisors work alongside management teams to help build successful organizations positioned for long-term growth. To learn more, please visit www.diversis.com.